FKLI Trading 6th October 2009

Following a couple of US 'shock waves' that sent investors around the region running for cover last week, KL index futures continued to trade
sideway on extended consolidation, flirting within a 5 five-point band of 1203 and 1208 for most part of trading sessions yesterday. Trading was lackluster as
players were not willing to bid-up prices while regional markets remained cautious, awaiting for clearer direction to emerge. Subsequently, futures advanced on
speculative and technical buying yesterday into the last hour of trading boosted by the firmer underlying cash index, notably palm oil plantation counter KLumpur
Kepong. At close, October contract settled at intraday high of 1216, up 12 points.
Despite upside momentum still weak, the market held up well and showed resilience near 1200 psychological marks. Coupled with DJIA overnight bounce from a
4-day losing streak after a report showed the first growth in the service industry in a year, bargain hunting ahead of upcoming earnings optimism seems set to
solidify the upbeat sentiment with downside support pegged at 1208. To the upside, initial overhead barrier is targeted at 1225 level.